L1 Financial Viability Must Know Words

What is the term for the point where total revenue equals total costs?

• Profit

• Break Even Point

• Loss

• Revenue

Which term describes expenses that remain constant?

• Revenue

• Cost

• Variable

• Fixed

What is the definition of 'Profit'?

• Money made after covering all costs

• Expenses paid to produce products

• Spending more than earned

• Money earned from selling products

Which term refers to the ability to quickly convert assets to cash?

• Equity

• Cash flow

• Capital

• Liquidity

What does an income statement show?

• Debts or obligations owed

• Financial performance over time

• What a business owns and owes

• Items of value owned

What is the purpose of a balance sheet?

• Looks at strengths, weaknesses, opportunities, and threats

• Compares the positives and negatives

• Shows what a business owns and owes

• Shows financial performance over time

Which term describes the money or resources used to start and grow a business?

• Revenue

• Capital

• Assets

• Liabilities

What is the term for government rules businesses must follow?

• Technological changes

• Regulations

• Competition

• Economic conditions

What does SWOT analysis examine?

• Financial performance over time

• What a business owns and owes

• Strengths, weaknesses, opportunities, and threats

• The purpose or reason for being

What is the term for the next best alternative forgone when making a choice?

• Opportunity cost

• Competitive advantage

• Market share

• Elasticity of demand